Contingent business interruption coverage

Contingent business interruption (CBI) insurance helps pay for unexpected losses when an outside party you depend on has a problem that stops your business from running normally. If you rely on suppliers, partners, and customers, contingent business coverage could be a good fit for your risk management plan.

What is contingent business interruption insurance?

Contingent business interruption insurance, also called contingent business income insurance, works similarly to the business interruption coverage found in a business owners policy (BOP). If a theft or other covered peril disrupts your revenue, this coverage can help pay for lost income and related expenses.

CBI extends that protection to situations where a supplier, vendor, manufacturer, or customer is impacted by a covered event that causes a stop to your operations.

Progressive Commercial can help customize a BOP with contingent BI so you can be prepared for, and recover quickly from, unforeseen events.

What does contingent business interruption insurance cover?

CBI insurance covers disruptions caused by events like theft, wind, fire, and hail that are included in your commercial property coverage on a BOP. If physical damage caused by a covered event impacts an outside company you depend on, CBI can pay the following:

• Lost profits while your business is temporarily shut down
• Additional expenses, like payroll and rent, needed to keep things running
• Costs to find replacement vendors or suppliers

What doesn't contingent business interruption insurance cover?

CBI coverage protects you from various incidents, but it doesn't cover every partner interruption. Common exclusions include:

• Events like floods, pollution, and earthquakes
• Third-party shutdowns not involving physical damage, such as bankruptcy and labor strikes
• Indirect partners further down the supply chain, like your vendor's supplier

How much does contingent business income coverage cost?

You can get CBI coverage as an endorsement on a business owners policy. In 2024, the national median cost for a BOP was $67 for new Progressive Commercial customers. What you'll pay depends on various factors, such as:

• Type and size of your business
• The risk level of your third-party resources
• Number of key suppliers
• Location of suppliers
• Your claims history
• Your policy limits and insurance deductibles

Do I need contingent business interruption coverage for my business?

When deciding if you need CBI insurance, ask yourself how much of your revenue depends on a third party's ability to operate. If you count on others to make and deliver important goods for your business, what would happen if they suddenly couldn't?

Imagine you own a small restaurant famous for its fresh seafood. You've been buying from the same local fishermen for years. Then, a red tide stops them from fishing, and you can't make your customers' favorite dishes. CBI insurance can act as a safety net, covering lost income until the tide turns.

Other professions besides restaurants can benefit from CBI insurance, including:

• Distributors and wholesalers
• Retailers
• Manufacturers
• Concessions and food vendors
• IT and technology firms

Get the coverage your business needs through Progressive Commercial

Speak with a trusted Progressive Commercial representative today to see how adding contingent business interruption coverage can enhance your BOP. Get a quote online now — it's fast, secure, and personalized to your needs.

Make sure you have a contingency plan

You can lower your business's overall risk by incorporating safety plans, security cameras, and alarm systems. But what if a vendor, supplier, or manufacturer holds up production or processes? With contingent business interruption coverage, you'll be prepared if the unexpected happens.

At Progressive Commercial, we'll help you navigate potential risks and setbacks by offering real-world solutions to keep your business running no matter what comes your way.

Quick facts about contingent business interruption coverage

Here's what you need to know about contingent business interruption coverage at a glance:

• Coverage: This coverage is typically added as an endorsement to your business owners policy and helps replace lost income caused by a third-party interruption.
• Cost: The median cost for a BOP policy is $67 per month for new customers, which is an affordable way to safeguard your business if you rely on outside partners.
• Exclusions: Specific situations aren't covered, including floods, supplier bankruptcy, and issues with indirect partners.